Nestle India Shares Fall After FSSAI Seeks Response On Maggi Complaint

Nestle India Ltd shares declined more than 3% in Friday’s trade after the Food Safety and Standards Authority of India (FSSAI) issued a notice to the company over an alleged consumer complaint involving a Maggi noodles packet.

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The stock dropped as much as 3.2% during the session to ₹1,376.25 and was trading at ₹1,378.90 in afternoon trade, down about 3.1% from the previous close.

FSSAI Seeks Detailed Information

The regulatory action follows complaints that surfaced on social media and prompted scrutiny by the food safety regulator.

According to reports, FSSAI has asked Nestle India to provide details related to the batch mentioned in the complaint, including information on the source or vendor, internal quality control records and measures taken to address the issue.

The regulator has also sought details of actions undertaken to identify and remove any potentially affected products from the supply chain, along with steps implemented to prevent similar incidents in the future.
The notice pertains to allegations regarding the detection of insect larvae in a Maggi packet. Further responses from the company and the regulator are awaited.

Other Companies Also Receive Notices

FSSAI’s review was not limited to Nestle India. The regulator also issued notices to Flipkart India and Open Secret following allegations that a food product sold through an online delivery platform contained insects.
In that case, FSSAI sought quality inspection records for the relevant period, details of corrective actions and information on preventive measures adopted by the companies.

Separately, the regulator issued a notice to KFC concerning alleged hygiene-related issues at one of its outlets located in Andhra Pradesh.

The food safety authority has asked the food business operator to identify deficiencies, if any, across areas such as sanitation, food handling practices, storage procedures, waste disposal systems, pest management and employee hygiene standards. Supporting documentation relating to corrective measures has also been sought.

Social Media Complaints Under Review

The most recent notifications are a result of complaints made online, indicating that there is more concern by the regulator regarding food safety and quality as per issues raised online.

The FSSAI has asked for the Action Taken Reports from the companies concerned. The regulator is examining the circumstances surrounding each complaint and the safeguards in place to address such issues.
Nestle India has not yet issued a detailed public response regarding the notice. The company remains one of the country’s largest packaged food manufacturers, with Maggi continuing to be among its most widely sold products.

Market participants tracked the development closely on Friday, with the stock reacting to the regulatory scrutiny even as the matter remains under examination. Further clarity is expected after the company submits its response and the regulator completes its review of the complaint.